Co-hosting in North Carolina - license required?

[Shelley123]

Hi all - I am currently co-hosting a couple of properties in the mountain community where we also own a cabin.  A local real estate agent filed a complaint to the state against me stating that I need a real estate license.  The properties all have listings on AirBnb in the home owners names.  I am listed as a co-host only.   All bookings are made on AirBnb.  The home owners are paid directly and they pay me a commission after.  The home owners also pay any service - such as cleaning directly to the provider.  I do organize the services and communicate with the guests.  I am able to update their listings and rates.  I don't believe I need a license.  Any insight?

[Brad-and-Dion0]

I am in the same position on the coast in NC. Wondering the same thing. I see lots of questions in this forum, but no answers? 

[Shelley123]

NC law states 6 activities that require a license

  1.  Listing or offering to list real estate for sale or rent

     ( all listings or websites are in owners name - owner is renting their property)

  2.  Selling or buying (or offering to sell or buy) real estate

      (no selling of property in short term rentals)

  3.  Leasing or renting (or offering to lease or rent) real estate

       (- all listings are on AirBnB/VRBO or owners own direct booking site

        - I live in another state and never "show" any property

        - all info about property is readily available on the owners listing and/or direct      

           booking site

        -I do not screen guests

       - I do not negotiate or broker any deal between guest and homeowner.  Homeowner

          is in full control of rates and availability.  AirBnb does the advertising, accepts

          bookings and processes payments.  AirBnb collects all money from guest and

         remits directly to the homeowner.

4.  Conducting (or offering to conduct) a real estate auction.

       (nothing to do with this in short term rentals)

5.  Selling, buying, leasing, assigning or exchanging any interest in real estate, including household interest, in connection with the sale or purchase of business.

       (nothing to do with this in short term rentals)

6.   Referring a party to a real estate licensee, if done for compensation.

       (nothing to do with short term rentals)

Besides all this I do not have the authority to direct maintenance, repairs or changes in any way to the home or a guest reservation without the home owners direction.

I am in the hospitality industry in Florida.  So I continue this and work as a concierge to short term rentals.  I received notice from the NC Real Estate Commission that I was fine to continue on.

[Angie-and-Mark0]

Hi Shelley, thanks so much for this information! I did have one question and that is that you mention "Besides all this I do not have the authority to direct maintenance, repairs or changes in any way to the home or a guest reservation without the home owners direction."

What does directing maintenance, repairs or property/guest changes have to do with the 6 rules? Did you mention it simply as a way to drive home the point that the owners are always "in charge"?

[Ariel1175]

As someone also wondering the 100% certain answer to this question I will say this… I just finished my licensing course and exams. In NC to preform ANY real estate transaction for SOMEONE ELSE AND get PAID- you need a license. In this case I am thinking you are essentially a property manager and this would indeed apply to the scenario. 

[Veronica1056]

However, there is no real estate transaction being performed in this case right? As co-host, she is not exchanging money between guests and homeowner. She is basically a guest concierge and personal assistant to the host. Obviously the best answer is ask an attorney. Since this was posted quite some time ago, I'm curious to know how it worked out for @Shelley123 

[Shelley123]

Hello all- I was turned in to the State of NC by a local realtor.  I had to submit to the state what I did in my business.  There is a list of I think about 10 items that qualify you as an agent or a transaction that requires you to be an agent.  I went through each item on the list and explained why it did not apply to me. The state came back to me and said I was fine to continue.  You do have to be careful as there are some grey areas.  All listings are in my owners names and I am listed only as a co-host.  You can't list them under your name.  All payments are paid directly to the owners.  All expenses are paid directly by the owners.  I invoice the following month for my fee only.  I also can't create a website to promote all my properties together.  That would cross a marketing line.    If you google the NC law you will find the exact list of things that you can't do or you would need a license.  Hope that helps!

[Veronica1056]

Thank you so much for the update! That was very helpful and good to know!

[Vicki564]

You got lucky. G.S. 93-A-2(c)(6)  states you have to be a W2 Salaried employee. 

[Katie927]

..

[Vicki564]

Unfortunetly the NC Statut GS 93A-2 states that if you do not have a lease then you are a PM. Unlicensed (W2) employees can perform some PM duties. Here is an example from the NC training. https://www.ncrec.gov/Pdfs/genupdate/5%20GenUp%202018-19%20Section%205%20Property%20Management.pdf

I would be very careful, especially if you already have an NC license.

[Amanda2277]

But she’s being paid a commission …. The NCREC is clear on this…

[Ashley1568]

Posting in case anyone else comes across this forum later. I teach classes for new Airbnb Hosts and am also a licensed real estate broker/firm owner/broker-in-charge/real estate instructor.

My advice to my students is always the same - if you aren't sure if what you are/want to do is crossing a line, call the NC Real Estate Commission. They are friendly people and love talking to members of the public. They will be happy to talk to you and explain what you can and can't do.

I've had quite a few students call and report back that it was extremely helpful.

[Carrie564]

@Shelley123 thanks for sharing your story. I also live in NC and am entering into a co-hosting arrangement with the owner of an AirBnB currently. I'm planning on setting up our arrangement almost exactly the same as yours. I am not licensed. I'm curious, if you can answer these two questions, where my model differs from yours.

First, if I choose to have AirBnB split the revenues and send me (the co-host) my split from the platform directly (rather than the way you are doing it and having the host pay the co-host bill at the end of the month), then does that cross over the line where I would need a license?

My second question is, what if I as the co-host make decisions about whether or not to book a guest (ie-I don't have "instantbook" activated and if a guest has no reviews I will not allow them to stay at the hosts house)? Would this constitute "screening" and therefore mean that I need a license?